State-owned SJVN bags Rs 70 bn Solar Contract from PSPCL

State-owned SJVN announced that it has secured a major contract from Punjab State Power Corporation (PSPCL) for the development and procurement of 1,200MW of solar power, requiring an investment of Rs 70 billion.

According to the company's statement, the subsidiary SJVN Green Energy (SGEL) will carry out the development of a 1,000 MW solar project throughout the country, while the remaining 200 MW will be developed in the state of Punjab.

The Letter of Intent (LOI) has already been received by SJVN from PSPCL for the purchase of 1,200 MW of solar energy. Under the terms of the agreement, PSPCL will purchase 1,000MW of energy produced anywhere in India at a rate of Rs 2.53 per unit, while the 200MW generated within Punjab will be purchased at a slightly higher rate of Rs 2.75 per unit.

The development of these solar projects will involve an estimated investment of around Rs 70 billion, and they will be carried out on a Build Own and Operate (BOO) basis.

The projects are expected to be commissioned within 18 months of the date of signing the power purchase agreement (PPA) and are scheduled for completion by the end of next year. The PPA, with a term of 25 years, will soon be finalized and signed between PSPCL and SGEL.